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Make Money Where You Live
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(You must click 'File' above and then select 'Download' to use the spreadsheet)
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ASSUMPTIONS
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Purchase Price $ 320,000
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Selling Cap Rate 6.00%
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Selling Expense 8.00%
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Buyer's Closing Costs 2.00%
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Yr 1 Gross Annual Income $ 38,400 $ 800
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Yr 1 Operating Expenses $ 16,000
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Income Growth Rate2.00%
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Vacancy Factor5.00%
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Operating Expense Growth Rate3.00%
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FINANCING TERMS:
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Loan Amount $ 240,000
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LTV Ratio75.00%
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Annual Interest Rate (%)4.00%
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Amort Term (in years)30
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Number of Payments/Year12
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Year:12345
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Potential Gross Income 38,400 39,168 39,951 40,750 41,565
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less Vacancy/Collection(1,920)(1,958)(1,998)(2,038)(2,078)
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Effective Gross Income 36,480 37,210 37,954 38,713 39,487
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less Other Operating Expenses(16,000)(16,480)(16,974)(17,484)(18,008)
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Net Operating Income 20,480 20,730 20,979 21,229 21,479
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less Debt Service(13,750)(13,750)(13,750)(13,750)(13,750)
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Before Tax Cash Flow 6,730 6,980 7,230 7,480 7,729
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Estimated Selling Price 357,983
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less Selling Costs(28,639)
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Net Sales Proceeds 329,344
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less Mortgage Balance(217,074)
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BTCF from Reversion 112,270
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Required Equity Investment80,000
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Buyer's Costs6,400
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Before Tax Cash Flow-86,400 6,730 6,980 7,230 7,480 120,000
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Total 5 Year Net Cash 62,020
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Subtract Rent Paid by Owner (49,959)
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Net Result To Owner 12,061
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Vacancy Fluff 9,992
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